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Mike Wagner

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[20 May 2010|05:04pm]

accounting (p. 456)

The recording, classifying, summarizing, and interpreting of financial events and transactions to provide management and other interested parties the information they need to make good decisions.

accounting cycle (p. 461)

A six-step procedure that results in the preparation and analysis of the major financial statements.

Accounts payable (p. 466)

Current liabilities involving money owed to others for merchandise or services purchased on credit but not yet paid for.

annual report (p. 458)

A yearly statement of the financial condition, progress, and expectations of an organization.

assets (p. 464)

Economic resources (things of value) owned by a firm.

auditing (p. 459)

The job of reviewing and evaluating the records used to prepare a company's financial statements.

balance sheet (p. 464)

The financial statement that reports a firm's financial condition at a specific time.

bonds payable (p. 466)

Long-term liabilities that represent money lent to the firm that must be paid back.

bookkeeping (p. 461)

The recording of business transactions.

cash flow (p. 472)

The difference between cash coming in and cash going out of a business.

certified internal auditor (CIA) (p. 460)

An accountant who has a bachelor's degree and two years of experience in internal auditing, and who has passed an exam administered by the Institute of Internal Auditors.

certified management accountant (CMA) (p. 457)

A professional accountant who has met certain educational and experience requirements, passed a qualifying exam in the field, and been certified by the Institute of Certified Management Accountants.

certified public accountant (CPA) (p. 458)

An accountant who passes a series of examinations established by the American Institute of Certified Public Accountants.

cost of goods sold (or cost of goods manufactured) (p. 469)

A measure of the cost of merchandise sold or cost of raw materials and supplies used for producing items for resale.

current assets (p. 466)

Items that can or will be converted into cash within one year.

depreciation (p. 470)

The systematic write-off of the cost of a tangible asset over its estimated useful life.

double-entry bookkeeping (p. 462)

The concept of writing every business transaction in two places.

financial accounting (p. 457)

Accounting information and analyses prepared for people outside the organization.

financial statement (p. 463)

A summary of all the transactions that have occurred over a particular period.

fixed assets (p. 466)

Assets that are relatively permanent, such as land, buildings, and equipment.

fundamental accounting equation (p. 464)

Assets = liabilities + owners' equity; this is the basis for the balance sheet.

government and not-for-profit accounting (p. 460)

Accounting system for organizations whose purpose is not generating a profit but serving ratepayers, taxpayers, and others according to a duly approved budget.

gross profit (gross margin) (p. 469)

How much a firm earned by buying (or making) and selling merchandise.

income statement (p. 467)

The financial statement that shows a firm's profit after costs, expenses, and taxes; it summarizes all of the resources that have come into the firm (revenue), all the resources that have left the firm, and the resulting net income.

independent audit (p. 460)

An evaluation and unbiased opinion about the accuracy of a company's financial statements.

intangible assets (p. 466)

Long-term assets (e.g., patents, trademarks, copyrights) that have no real physical form but do have value.

journal (p. 461)

The record book or computer program where accounting data are first entered.

ledger (p. 462)

A specialized accounting book or computer program in which information from accounting journals is accumulated into specific categories and posted so that managers can find all the information about one account in the same place.

liabilities (p. 466)

What the business owes to others (debts).

liquidity (p. 466)

How fast an asset can be converted into cash.

managerial accounting (p. 457)

Accounting used to provide information and analyses to managers within the organization to assist them in decision making.

net income or net loss (p. 467)

Revenue left over after all costs and expenses, including taxes, are paid.

notes payable (p. 466)

Short-term or long-term liabilities that a business promises to repay by a certain date.

operating expenses (p. 470)

Costs involved in operating a business, such as rent, utilities, and salaries.

owners' equity (p. 466)

The amount of the business that belongs to the owners minus any liabilities owed by the business.

private accountant (p. 458)

An accountant who works for a single firm, government agency, or nonprofit organization.

public accountant (p. 458)

An accountant who provides his or her accounting services to individuals or businesses on a fee basis.

ratio analysis (p. 473)

The assessment of a firm's financial condition and performance through calculations and interpretations of financial ratios developed from the firm's financial statements.

retained earnings (p. 466)

The accumulated earnings from a firm's profitable operations that were kept in the business and not paid out to stockholders in dividends.

revenue (p. 4)

The total amount of money a business takes in during a given period by selling goods and services.

statement of cash flows (p. 471)

Financial statement that reports cash receipts and disbursements related to a firm's three major activities: operations, investments, and financing.

tax accountant (p. 460)

An accountant trained in tax law and responsible for preparing tax returns or developing tax strategies.

trial balance (p. 463)

A summary of all the data in the account ledgers to show whether the figures are correct and balanced.

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[20 May 2010|05:03pm]

budget (p. 488)

A financial plan that sets forth management's expectations, and, on the basis of those expectations, allocates the use of specific resources throughout the firm.

capital budget (p. 488)

A budget that highlights a firm's spending plans for major asset purchases that often require large sums of money.

capital expenditures (p. 493)

Major investments in either tangible long-term assets such as land, buildings, and equipment or intangible assets such as patents, trademarks, and copyrights.

cash budget (p. 488)

A budget that estimates a firm's projected cash inflows and outflows that the firm can use to plan for any cash shortages or surpluses during a given period.

cash flow forecast (p. 488)

Forecast that predicts the cash inflows and outflows in future periods, usually months or quarters.

commercial finance companies (p. 497)

Organizations that make short-term loans to borrowers who offer tangible assets as collateral.

commercial paper (p. 498)

Unsecured promissory notes of $100,000 and up that mature (come due) in 270 days or less.

cost of capital (p. 504)

The rate of return a company must earn in order to meet the demands of its lenders and expectations of its equity holders.

debt financing (p. 493)

Funds raised through various forms of borrowing that must be repaid.

equity financing (p. 493)

Funds raised from operations within the firm or through the sale of ownership in the firm.

factoring (p. 497)

The process of selling accounts receivable for cash.

finance (p. 484)

The function in a business that acquires funds for the firm and manages those funds within the firm.

financial control (p. 489)

A process in which a firm periodically compares its actual revenues, costs, and expenses with its projected ones.

financial management (p. 484)

The job of managing a firm's resources so it can meet its goals and objectives.

financial managers (p. 484)

Managers who make recommendations to top executives regarding strategies for improving the financial strength of a firm.

indenture terms (p. 501)

The terms of agreement in a bond issue.

leverage (p. 504)

Raising needed funds through borrowing to increase a firm's rate of return.

line of credit (p. 497)

A given amount of unsecured short-term funds a bank will lend to a business, provided the funds are readily available.

long-term financing (p. 493)

Borrowed capital that will be repaid over a specific period longer than one year.

long-term forecast (p. 488)

Forecast that predicts revenues, costs, and expenses for a period longer than 1 year, and sometimes as far as 5 or 10 years into the future.

operating budget (master budget) (p. 489)

The budget that ties together all of a firm's other budgets; it is the projection of dollar allocations to various costs and expenses needed to run or operate the business, given projected revenues.

promissory note (p. 495)

A written contract with a promise to pay a supplier a specific sum of money at a definite time.

revolving credit agreement (p. 497)

A line of credit that is guaranteed by the bank.

risk/return trade-off (p. 501)

The principle that the greater the risk a lender takes in making a loan, the higher the interest rate required.

secured bond (p. 501)

A bond issued with some form of collateral.

secured loan (p. 496)

A loan backed by something valuable, such as property.

short-term financing (p. 493)

Borrowed capital that will be repaid within one year.

short-term forecast (p. 488)

Forecast that predicts revenues, costs, and expenses for a period of one year or less.

term-loan agreement (p. 500)

A promissory note that requires the borrower to repay the loan in specified installments.

trade credit (p. 494)

The practice of buying goods and services now and paying for them later.

unsecured bond (p. 501)

A bond backed only by the reputation of the issuer; also called a debenture bond.

unsecured loan (p. 497)

A loan that's not backed by any specific assets.

venture capital (p. 503)

Money that is invested in new or emerging companies that are perceived as having great profit potential.

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[20 May 2010|05:03pm]

bond (p. 513)

A corporate certificate indicating that a person has lent money to a firm.

buying stock on margin (p. 530)

Purchasing stocks by borrowing some of the purchase cost from the brokerage firm.

capital gains (p. 526)

The positive difference between the purchase price of a stock and its sale price.

commodity exchange (p. 531)

A securities exchange that specializes in the buying and selling of precious metals and minerals (e.g., silver, foreign currencies, gasoline) and agricultural goods (e.g., wheat, cattle, sugar).

common stock (p. 518)

The most basic form of ownership in a firm; it confers voting rights and the right to share in the firm's profits through dividends, if offered by the firm's board of directors.

debenture bonds (p. 515)

Bonds that are unsecured (i.e., not backed by any collateral such as equipment).

diversification (p. 530)

Buying several different investment alternatives to spread the risk of investing.

dividends (p. 516)

Part of a firm's profits that may be distributed to stockholders as either cash payments or additional shares of stock.

Dow Jones Industrial Average (the Dow) (p. 555)

The average cost of 30 selected industrial stocks, used to give an indication of the direction (up or down) of the stock market over time.

exchange-traded funds (ETFs) (p. 528)

Collections of stocks that are traded on exchanges but are traded more like individual stocks than like mutual funds.

futures markets (p. 531)

Commodities markets that involve the purchase and sale of goods for delivery sometime in the future.

initial public offering (IPO) (p. 512)

The first public offering of a corporation's stock.

institutional investors (p. 513)

Large organizations—such as pension funds, mutual funds, insurance companies, and banks—that invest their own funds or the funds of others.

interest (p. 513)

The payment the issuer of the bond makes to the bondholders for use of the borrowed money.

investment bankers (p. 513)

Specialists who assist in the issue and sale of new securities.

junk bonds (p. 530)

High-risk, high-interest bonds.

maturity date (p. 514)

The exact date the issuer of a bond must pay the principal to the bondholder.

mutual fund (p. 527)

An organization that buys stocks and bonds and then sells shares in those securities to the public.

NASDAQ (p. 521)

A nationwide electronic system that communicates over-the-counter trades to brokers.

over-the-counter (OTC) market (p. 520)

Exchange that provides a means to trade stocks not listed on the national exchanges.

preferred stock (p. 517)

Stock that gives its owners preference in the payment of dividends and an earlier claim on assets than common stockholders if the company is forced out of business and its assets sold.

program trading (p. 536)

Giving instructions to computers to automatically sell if the price of a stock dips to a certain point to avoid potential losses.

prospectus (p. 521)

A condensed version of economic and financial information that a company must file with the SEC before issuing stock; the prospectus must be sent to prospective investors.

Securities and Exchange Commission (SEC) (p. 521)

Federal agency that has responsibility for regulating the various exchanges.

sinking fund (p. 515)

A reserve account in which the issuer of a bond periodically retires some part of the bond principal prior to maturity so that enough capital will be accumulated by the maturity date to pay off the bond.

stockbroker (p. 522)

A registered representative who works as a market intermediary to buy and sell securities for clients.

stock certificate (p. 516)

Evidence of stock ownership that specifies the name of the company, the number of shares it represents, and the type of stock being issued.

stock exchange (p. 519)

An organization whose members can buy and sell (exchange) securities for companies and investors.

stocks (p. 516)

Shares of ownership in a company

stock splits (p. 527)

An action by a company that gives stockholders two or more shares of stock for each one they own.

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[20 May 2010|05:03pm]

banker's acceptance (p. 563)

A promise that the bank will pay some specified amount at a particular time

barter (p. 546)

The trading of goods and services for other goods and services directly.

certificate of deposit (CD) (p. 555)

A time-deposit (savings) account that earns interest to be delivered at the end of the certificate's maturity date.

commercial bank (p. 554)

A profit-seeking organization that receives deposits from individuals and corporations in the form of checking and savings accounts and then uses some of these funds to make loans.

credit unions (p. 557)

Nonprofit, member-owned financial cooperatives that offer the full variety of banking services to their members.

debit card (p. 562)

An electronic funds transfer tool that serves the same function as checks: it withdraws funds from a checking account.

demand deposit (p. 554)

The technical name for a checking account; the money in a demand deposit can be withdrawn anytime on demand from the depositor.

discount rate (p. 551)

The interest rate that the Fed charges for loans to member banks.

electronic check conversion (ECC) (p. 561)

An electronic funds transfer tool that converts a traditional paper check into an electronic transaction at the cash register and processes it through the Federal Reserve's Automated Clearing House.

electronic funds transfer (EFT) system (p. 561)

A computerized system that electronically performs financial transactions such as making purchases, paying bills, and receiving paychecks.

Federal Deposit Insurance Corporation (FDIC) (p. 559)

An independent agency of the U.S. government that insures bank deposits.

International Monetary Fund (IMF) (p. 565)

Organization that assists the smooth flow of money among nations.

letter of credit (p. 563)

A promise by the bank to pay the seller a given amount if certain conditions are met.

M-1 (p. 547)

Money that can be accessed quickly and easily (coins and paper money, checks, traveler's checks, etc.).

M-2 (p. 547)

Money included in M-1 plus money that may take a little more time to obtain (savings accounts, money market accounts, mutual funds, certificates of deposit, etc.).

money (p. 546)

Anything that people generally accept as payment for goods and services.

money supply (p. 547)

The amount of money the Federal Reserve Bank makes available for people to buy goods and services.

nonbanks (p. 554)

Financial organizations that accept no deposits but offer many of the services provided by regular banks (pension funds, insurance companies, commercial finance companies, consumer finance companies, and brokerage houses).

open-market operations (p. 550)

The buying and selling of U.S. government bonds by the Fed with the goal of regulating the money supply.

pension funds (p. 558)

Amounts of money put aside by corporations, nonprofit organizations, or unions to cover part of the financial needs of members when they retire.

reserve requirement (p. 550)

A percentage of commercial banks' checking and savings accounts that must be physically kept in the bank.

savings and loan association (S&L) (p. 557)

A financial institution that accepts both savings and checking deposits and provides home mortgage loans.

Savings Association Insurance Fund (SAIF) (p. 559)

The part of the FDIC that insures holders of accounts in savings and loan associations.

smart card (p. 562)

An electronic funds transfer tool that is a combination credit card, debit card, phone card, driver's license card, and more.

time deposit (p. 555)

The technical name for a savings account; the bank can require prior notice before the owner withdraws money from a time deposit.

World Bank (p. 564)

The bank primarily responsible for financing economic development; also known as the International Bank for Reconstruction and Development.

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Chap 17 [20 May 2010|05:02pm]

1.            Financial information is critical to the growth and development of an organization. Accounting provides the information necessary to measure a firm's financial condition.

1. Describe the importance of financial information and accounting.

           What is accounting?

Accounting is the recording, classifying, summarizing, and interpreting of financial events and transactions that affect an organization. The methods used to record and summarize accounting data into reports are called an accounting system.

2.            The accounting profession covers five major areas: managerial accounting, financial accounting, auditing, tax accounting, and governmental and not-for-profit accounting.

2. Define and explain the different areas of the accounting profession.

           How does managerial accounting differ from financial accounting?

Managerial accounting provides information and analyses to managers within the firm to assist them in decision making. Financial accounting provides information and analyses to external users of data such as creditors and lenders.

           What is the job of an auditor?

Auditors review and evaluate the standards used to prepare a company's financial statements. An independent audit is conducted by a public accountant and is an evaluation and unbiased opinion about the accuracy of company financial statements.

           What is the difference between a private accountant and a public accountant?

A public accountant provides services for a fee to a variety of companies, whereas a private accountant works for a single company. Private and public accountants do essentially the same things with the exception of independent audits. Private accountants do perform internal audits, but only public accountants supply independent audits.

3.            The accounting cycle is a six-step procedure that results in the preparation and analysis of the major financial statements.

3. List the steps in the accounting cycle, distinguish between accounting and bookkeeping, and explain how computers are used in accounting.

           What are the six steps of the accounting cycle?

The six steps of the accounting cycle are (1) analyzing documents; (2) recording information into journals; (3) posting that information into ledgers; (4) developing a trial balance; (5) preparing financial statements (the balance sheet, income statement, and statement of cash flows); and (6) analyzing financial statements.

           What is the difference between bookkeeping and accounting?

Many people confuse bookkeeping and accounting. Bookkeeping is part of accounting and includes the mechanical part of recording data. Accounting also includes classifying, summarizing, interpreting, and reporting data to management.

           What are journals and ledgers?

Journals are original-entry accounting documents. This means that they are the first place transactions are recorded. Summaries of journal entries are recorded (posted) into ledgers. Ledgers are specialized accounting books that arrange the transactions by homogeneous groups (accounts).

           How can computers help accountants?

Computers can record and analyze data and provide financial reports. Software is available that can continuously analyze and test accounting systems to be sure they are functioning correctly. Computers can help decision making by providing appropriate information, but they cannot make good financial decisions independently. Accounting applications and creativity are still human traits.

4.            Financial statements are a critical part of the firm's financial position.

4. Explain how the major financial statements differ.

           What is a balance sheet?

A balance sheet reports the financial position of a firm on a particular day. The fundamental accounting equation used to prepare the balance sheet is Assets = Liabilities + Owners' equity.

           What are the major accounts of the balance sheet?

Assets are economic resources owned by the firm, such as buildings and machinery. Liabilities are amounts owed by the firm to others (e.g., creditors, bondholders). Owners' equity is the value of the things the firm owns (assets) minus any liabilities; thus, owners' equity equals assets minus liabilities.

           What is an income statement?

An income statement reports revenues, costs, and expenses for a specific period of time (e.g., for the year ended December 31, 2007). The formula is Revenue − Cost of goods sold = Gross margin; Gross margin − Operating expenses = Net income before taxes; and Net income before taxes − Taxes = Net income (or net loss). Note that the income statement was once called the profit-and-loss statement.

           What is a statement of cash flows?

Cash flow is the difference between cash receipts (money coming in) and cash disbursements (money going out). The statement of cash flows reports cash receipts and disbursements related to the firm's major activities: operations, investments, and financing.

5.            Financial ratios are a key part of analyzing financial information.

5. Explain the importance of ratio analysis in reporting financial information.

           What are the four key categories of ratios?

There are four key categories of ratios: liquidity ratios, leverage (debt) ratios, profitability (performance) ratios, and activity ratios.

           What is the major value of ratio analysis to the firm?

Ratio analysis provides the firm with information about its financial position in key areas compared to comparable firms in its industry and its past performance.

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Chap 18 [20 May 2010|05:02pm]

1.            Finance is that function in a business responsible for acquiring funds for the firm, managing funds within the firm (e.g., preparing budgets and doing cash flow analysis), and planning for the expenditure of funds on various assets.

1. Describe the importance of finance and financial management to an organization, and explain the responsibilities of financial managers.

           What are the most common ways firms fail financially?

The most common financial problems are (1) undercapitalization, (2) poor control over cash flow, and (3) inadequate expense control.

           What do financial managers do?

Financial managers plan, budget, control funds, obtain funds, collect funds, audit, manage taxes, and advise top management on financial matters.

2.            Financial planning involves forecasting short- and long-term needs, budgeting, and establishing financial controls.

2. Outline the financial planning process, and explain the three key budgets in the financial plan.

           What are the three budgets of finance?

The capital budget is the spending plan for expensive assets such as property, plant, and equipment. The cash budget is the projected cash balance at the end of a given period. The operating (master) budget summarizes the information in the other two budgets; it projects dollar allocations to various costs and expenses given various revenues.

3.            During the course of a business's life, its financial needs shift considerably.

3. Explain the major reasons why firms need operating funds, and identify various types of financing that can be used to obtain those funds.

           What are the major financial needs for firms?

Businesses have financial needs in four major areas: (1) managing day-by-day needs of the business, (2) controlling credit operations, (3) acquiring needed inventory, and (4) making capital expenditures.

           What's the difference between debt financing and equity financing?

Debt financing refers to funds raised by borrowing (going into debt), whereas equity financing is raised from within the firm (through retained earnings) or by selling ownership in the company by issuing stock or selling ownership to venture capitalists.

           What's the difference between short-term and long-term financing?

Short-term financing refers to funds that will be repaid in less than one year, whereas long-term financing refers to funds that will be repaid over a specific time period of more than one year.

4.            Sources of short-term financing include trade credit, promissory notes, family and friends, commercial banks and other financial institutions, factoring, commercial paper, and credit cards.

4. Identify and describe different sources of short-term financing.

           Why should businesses use trade credit?

Trade credit is the least expensive and most convenient form of short-term financing. Businesses can buy goods today and pay for them sometime in the future.

           What's a line of credit?

It is an agreement by a bank to lend a specified amount of money to the business at any time, if the money is available. A revolving credit agreement is a line of credit that guarantees a loan will be available—for a fee.

           What's the difference between a secured loan and an unsecured loan?

An unsecured loan has no collateral backing it. Secured loans have collateral backed by assets such as accounts receivable, inventory, or other property of value.

           Is factoring a form of secured loan?

No, factoring means selling accounts receivable at a discounted rate to a factor (an intermediary that pays cash for those accounts).

           What's commercial paper?

Commercial paper is a corporation's unsecured promissory note maturing in 270 days or less.

5.            One of the important functions of a finance manager is to obtain long-term financing.

5. Identify and describe different sources of long-term financing.

           What are the major sources of long-term financing?

Debt financing involves the sale of bonds and long-term loans from banks and other financial institutions. Equity financing is obtained through the sale of company stock, from the firm's retained earnings, or from venture capital firms.

           What are the two major forms of debt financing?

Debt financing comes from two sources: selling bonds and borrowing from individuals, banks, and other financial institutions. Bonds can be secured by some form of collateral or can be unsecured. The same is true of loans.

           What's leverage, and how do firms use it?

Leverage is raising funds from borrowing. It involves the use of borrowed funds to invest in such undertakings as expansion, major asset purchases, and research and development. Firms measure the risk of borrowing (leverage) against the potential for higher profits.

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Chap 19 [20 May 2010|05:01pm]

1.            Securities markets provide opportunities for businesses and investors.

1. Identify and explain the functions of securities markets, and discuss the role of investment bankers.

           What opportunities are provided to businesses and individual investors by securities markets?

Businesses are able to raise much-needed funding to help finance major expenses of the firm. Individual investors can share in the success and growth of emerging firms by having the opportunity of investing in the firm.

           What role do investment bankers play in securities markets?

Investment bankers are specialists who assist in the issue and sale of new securities.

2.            Companies can raise capital by debt financing, which involves issuing bonds.

2. Compare the advantages and disadvantages of debt financing by issuing bonds, and identify the classes and features of bonds.

           What are the advantages and disadvantages of issuing bonds?

The advantages of issuing bonds include the following: (1) Management retains control since bondholders cannot vote; (2) interest paid on bonds is tax deductible; (3) bonds are only a temporary source of financing, and after they are paid off the debt is eliminated; and (4) bonds can be paid back early if they are issued with a call provision and often bonds can be convertible to common stock. The disadvantages of bonds include the following: (1) Because bonds are an increase in debt, they may affect the market's perception of the company adversely; (2) interest on bonds must be paid; and (3) the bond's face value must be repaid on the maturity date.

           Are there different types of bonds?

Yes. There are unsecured (debenture) and secured bonds. Unsecured bonds are not supported by collateral, whereas secured bonds are backed by tangible assets such as mortgages, buildings, and equipment.

3.            Companies can also raise capital by equity financing, which involves selling stock.

3. Compare the advantages and disadvantages of equity financing by issuing stock, and explain the differences between common and preferred stock.

           What are the advantages and disadvantages of selling stock?

The advantages of selling stock include the following: (1) The stock price never has to be repaid since stockholders are owners in the company; (2) there is no legal obligation to pay dividends; and (3) no debt is incurred, so the company is financially stronger. Disadvantages of selling stock include the following: (1) Stockholders become owners of the firm and can affect its management by voting for the board of directors; (2) it is more costly to pay dividends, since they are paid after taxes; and (3) managers may be tempted to make stockholders happy in the short term rather than plan for long-term needs.

           What are the differences between common and preferred stock?

Holders of common stock have voting rights in the company. Holders of preferred stock generally have no voting rights. In exchange for having no voting rights, preferred stocks offer a fixed dividend that must be paid in full before common stockholders receive a dividend. Preferred stockholders are also paid back their investment before common stockholders if the company is forced out of business.

4.            Stock exchanges afford investors the opportunity of investing in securities markets through the different investment options that are offered.

4. Describe the various stock exchanges where securities are traded.

           What is a stock exchange?

Stock exchanges are securities markets whose members are involved in buying and selling securities such as bonds and stocks.

           What are the different exchanges?

There are stock exchanges all over the world. The largest U.S. exchange is the New York Stock Exchange (NYSE). It and the American Stock Exchange (AMEX) together are known as national exchanges because they handle stock of companies all over the country. In addition, there are several regional exchanges that deal primarily with companies in their own areas.

           What is the over-the-counter (OTC) market?

The OTC market is a system for exchanging stocks not listed on the national exchanges.

5.            Securities markets provide opportunities to buy and sell investments.

5. Explain how to invest in securities markets and various investment objectives such as long-term growth, income, cash, and protection from inflation.

           How do investors normally make purchases in securities markets?

Investors generally purchase investments through market intermediaries called stockbrokers, who provide many different services. Online investing is also very popular.

           What are the criteria for selecting investments?

Investors should determine their overall financial objectives. Are they interested in growth, income, cash, or a hedge against inflation? Investments should be evaluated with regard to (1) risk, (2) yield, (3) duration, (4) liquidity, and (5) tax consequences.

           How are securities exchanges regulated?

The Securities and Exchange Commission (SEC) is responsible for regulating securities exchanges. Also, according to SEC rules, companies that intend to sell bonds or stock to the public must provide a prospectus to potential investors.

           What is insider trading?

Insider trading involves the use of information or knowledge that individuals gain through their position that allows them to benefit unfairly from fluctuations in security prices.

6.            Bonds present opportunities for investors.

6. Analyze the opportunities bonds offer as investments.

           What is the difference between a bond selling at a discount and a bond selling at a premium?

A bond selling at a premium is a bond that can be sold in securities markets (secondary market) at a price above its face value. A bond selling at a discount is a bond that can be sold in securities markets (secondary market) but at a price below its face value.

7.            Stocks present opportunities for investors to enhance their financial position.

7. Explain the opportunities stocks offer as investments.

           What is a market order?

A market order tells a broker to buy or to sell a security immediately at the best price available. A limit order tells the broker to buy or sell at a specific price if the stock reaches that price.

           What does it mean when a stock splits?

When a stock splits, stockholders receive two or more shares of stock for each share they own. Each share is then worth half or less of the original share. Therefore, while the number of the shares in the company increases, the total value of the stockholders' holdings stays the same. The lower price per share may increase demand for the stock.

8.            Mutual funds are attractive investments for small or beginning investors.

8. Explain the opportunities in mutual funds and exchange-traded funds (ETFs) as investments, and the benefits of diversifying investments.

           How can mutual funds help individuals diversify their investments?

A mutual fund is an organization that buys stocks and bonds and then sells shares in those securities to the public. Individuals who buy shares in a mutual fund are able to invest in many different companies they could not afford to invest in otherwise.

           What is diversification?

Diversification means buying several different types of investments (government bonds, corporate bonds, preferred stock, common stock, etc.) with different degrees of risk. The purpose is to reduce the overall risk an investor would assume by just investing in one type of security.

           What are ETFs?

ETFs are similar to mutual funds in that they are collections of stocks that are traded on exchanges, but are traded more like individual stocks.

9.            Other types of speculative investments are available for investors seeking large returns on their investments.

9. Discuss specific high-risk investments, including junk bonds, buying stock on margin, and commodity trading.

           What is a junk bond?

Junk bonds are high-risk (rated BB or below), high-interest debenture bonds that speculative investors often find attractive.

           What does buying on margin mean?

It means that the investor borrows up to 50 percent of the cost of a stock from the broker so he or she can get shares of stock without paying the full price of the stock.

           What are commodity exchanges?

Commodity exchanges specialize in the buying and selling of precious metals and minerals (e.g., silver, oil) and agricultural goods (e.g., wheat, cattle, sugar).

10.          Security quotations and Dow Jones Industrial Averages are listed daily in newspapers.

10. Explain securities quotations listed in the financial section of a newspaper, and describe how stock market indicators like the Dow Jones Industrial Average affect the market.

           What information do stock quotations give you?

The stock quotations give you all kinds of information: the highest price in the last 52 weeks; the lowest price; the dividend yield; the price/earnings ratio; the total shares traded that day; and the close and net change in price from the previous day. Bond quotations give you information regarding trading bonds in securities markets, as do quotations concerning mutual funds.

           What is the Dow Jones Industrial Average?

The Dow Jones Industrial Average is the average price of 30 specific stocks used to indicate a direction (up or down) of the stock market.

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Chap 20 [20 May 2010|05:01pm]

 

1.            Money is anything that people generally accept as payment for goods and services.

1. Explain what money is and how its value is determined.

           How is the value of money determined?

The value of money depends on the money supply; that is, how much money is available to buy goods and services. Too much money in circulation causes inflation. Too little money causes deflation, recession, and unemployment.

2.            Because the value of money is so important to the domestic economy and international trade, an organization was formed to control the money supply.

2. Describe how the Federal Reserve Controls the money supply.

           What's that organization and how does it work?

The Federal Reserve makes financial institutions keep funds in the Federal Reserve System (reserve requirement), buys and sells government securities (open-market operations), and lends money to banks (the discount rate). To increase the money supply, the Fed can cut the reserve requirement, buy government bonds, and lower the discount rate.

3.            In the American colonies, there were no banks at first and coins were limited. The colonists traded goods for goods instead of using money.

3. Trace the history of banking and the Federal Reserve System.

           How did banking evolve in the United States?

Massachusetts issued its own paper money in 1690; other colonies followed suit. British land banks lent money to farmers but ended such loans by 1741. After the American Revolution, there was much debate about the role of banking, and there were heated battles between the Central Bank of the United States and state banks. Eventually, a federally chartered and state-chartered system was established, but chaos continued until many banks failed in 1907. The system was revived by the Federal Reserve only to fail again during the Great Depression. The Fed, banks, and S&Ls were in the news during the 1990s because many banks and S&Ls failed and the Federal Reserve kept raising interest rates. The Fed then cut interest rates 13 times.

4.            Savings and loans, commercial banks, and credit unions are all part of the banking system.

4. Classify the various institutions in the U.S. banking system.

           How do they differ from one another?

Before deregulation in 1980, commercial banks were unique in that they handled both deposits and checking accounts. At that time, savings and loans couldn't offer checking services; their main function was to encourage thrift and home ownership by offering high interest rates on savings accounts and providing home mortgages. Deregulation closed the gaps between banks and S&Ls so that they now offer similar services.

           What kinds of services do they offer?

Banks and thrifts offer such services as savings accounts, NOW accounts, CDs, loans, individual retirement accounts (IRAs), safe-deposit boxes, online banking, insurance, stock, and traveler's checks.

           What is a credit union?

A credit union is a member-owned cooperative that offers everything that a bank does. That is, it takes deposits, allows you to write checks, and makes loans. It also may sell life insurance and make home loans. Because credit unions are member-owned cooperatives rather than profit seeking businesses like banks, credit union interest rates are sometimes higher than those from banks, and loan rates are often lower.

           What are some of the other financial institutions that make loans and do other bank-like operations?

Nonbanks include life insurance companies that lend out their funds, pension funds that invest in stocks and bonds and make loans, brokerage firms that offer investment services, and commercial finance companies.

5.            The government has created organizations to protect depositors from losses such as those experienced during the Great Depression.

5. Explain the importance of the Federal Deposit Insurance Corporation and other organizations that guarantee funds.

           What agencies ensure that the money you put into a bank, S&L, or credit union is safe?

Money deposited in banks is insured by an independent government agency, the Federal Deposit Insurance Corporation (FDIC). Money in S&Ls is insured by another agency connected to the FDIC, the Savings Association Insurance Fund (SAIF). Money in credit unions is insured by the National Credit Union Administration (NCUA). These organizations protect your savings up to $100,000 per account.

6.            There will be many changes in the banking system in coming years.

6. Discuss the future of the U.S. banking system.

           What are some major changes?

One important change will be more services offered by banks, including insurance, securities (stocks, bonds, and mutual funds), and real estate sales. Electronic funds transfer (EFT) systems will make it possible to buy goods and services with no money. Automated teller machines enable you to get foreign money whenever and wherever you want it. Online banking may change the banking process dramatically as people become more used to paying bills and conducting other transactions online. ATMs will offer more services, including the ability to pick up tickets to events and download music.

7.            Today's money markets aren't national; they are global.

7. Evaluate the role and importance of international banking, and the role of the World Bank and the International Monetary Fund.

           What do we mean by global markets?

Global markets mean that banks do not necessarily keep their money in their own countries. They make investments where they get the maximum return.

           What are the roles of the World Bank and the IMF?

The World Bank (also known as the International Bank for Reconstruction and Development) is primarily responsible for financing economic development. The International Monetary Fund (IMF), in contrast, was established to assist the smooth flow of money among nations. It requires members (who join voluntarily) to allow their own money to be exchanged for foreign money freely, to keep the IMF informed about changes in monetary policy, and to modify those policies on the advice of the IMF to accommodate the needs of the entire membership.

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asdfadsfadsf [18 May 2010|08:07am]

Big Men Alternate term for headmen common in Melanesian societies. See headmen.

bilateral descent Descent that is traced equally through both mother and father.

bilocal residence The condition in which a newly married couple reside either with or near the groom’s parents or the bride’s parents.

biological anthropology A subfield of anthro- pology that studies humans as a biological spe- cies. Also called physical anthropology.

Biped An animal that walks on two legs.

Bridewealth A form of marriage finance in which valuable gifts are given by the groom’s kin to the bride’s kin.

carrying capacity The maximum population that a habitat can sustain.

Caste A ranked group with membership deter- mined at birth.

Chiefdom A type of society with an office of chief, most commonly hereditary; social rank- ing; and a redistributive economy.

Clan A descent group consisting of two or more lineages that trace their origin to a mythical ancestor.

class A group of people who have a similar rela- tionship to wealth, power, and prestige.

Cline The variation of a biological trait along a geographic continuum. Human skin pigments show distribution along a cline from the equa- tor north and south.

Colonialism Influence and dominance of one nation over another for the purpose of exploit- ing raw resources. The dominant nation-state establishes a physical presence and a colonial government. See imperialism; hegemony.

commodity money Currency in the form of valued objects such as shells or gold.

Community An association of people who share a common identity, including geographic boun - daries, common language, and culture.

comparative method The methodological ap- proach of comparing data. Anthropologists use

the comparative method.

consanguineal relatives Kin related by blood.

contagious magic A type of magic based on the idea that something that has contact with a person or animal contains some essence of that being and that magic performed on the item will have the same effect as if performed on the being.

contemporary human variation studies The study of the biological variation in living humans.

cross-cousin Ego’s mother’s brother’s child and father’s sister’s child.

cultural anthropology A subfield of anthro- pology that focuses on human sociocultural adaptations.

cultural ecology The study of the processes by which a society adapts to its environment. cultural evolution A model for the develop- ment of society that delineates a sequence of cultural change over time.

cultural relativism The perspective that any aspect of a culture must be viewed and evalu- ated within the context of that culture.

cultural resource management (CRM) The conservation and management of archaeologi- cal sites to protect them.

Culture The sum total of the knowledge, ideas, behaviors, and material creations that are learned, shared, and transmitted primarily through the symbolic system of language. These components create a pattern (that changes over time) and serve as guides and standards of behavior for members of the society. The term culture is used in the abstract as well as to refer to a specific culture.

culture shock A label for the resultant feelings of homesickness, disorientation, helplessness, and frustration that occur after exposure to an unfamiliar culture.descent group A group of people who share identity and come from a common ancestor. descriptive linguistics The part of anthropo- logical linguistics that focuses on the mechan- ics of language.

Deviance The violation of an ideal pattern of behavior within a society.

Diffusion The voluntary borrowing and exchange of items or ideas between cultures.

Diffusionism Early theoretical school that ex- plained the origin and spread of artifacts and ideas through borrowing between cultures.

displacement The ability of humans to com- municate symbolically about distant time and

place.

division of labor The manner of dividing work based on criteria such as age or gender.

double descent A descent system with two sep- arate lines of descent that are both recognized at the same time.

Dowry A form of marriage finance in which valuable gifts are given by the bride’s kin to the

groom’s kin.

ecofacts The remains of plants, animals, or nat- urally occurring nonorganic substances.

ecological model A model that views a culture as part of a larger global ecological system with each aspect of the system interacting with all of the other parts.

Egalitarian Refers to members of a society hav- ing equal access to status, power, and wealth within the same category such as age or gender.

egalitarian society A society in which individ- uals within the same category of age and gen- der have equal access to wealth, prestige, and power.

Emic  An insider’s view of a culture. This per- spective in ethnography uses the categories and ideas that are relevant and meaningful to the culture under study.

Enculturation The process of learning one’s culture while growing up in it.

Endogamy A cultural rule that dictates that one must marry within a designated group.

ethnic group A type of subculture character- ized by members sharing a culture of origin, often one originating in another country.

ethnoarchaeologyThe study of contemporary societies’ behaviors and uses of material objects in order to better understand how human behav- ior translates into the archaeological record.

Ethnocentrism Making value judgments based on one’s own culture when describing aspects of another culture.

Ethnography A written description of a culture based on data gathered from fieldwork.

ethnolinguistics  A field of study in linguistics that analyzes the relationship between a lan- guage and culture.

Ethnology The comparative study of cultures with the aim of presenting analytical general- izations about human culture.

Ethnomusicology The study of the music of a contemporary society within the context of that society.

Etic  An outsider’s view of a culture. This per- Spective in ethnography uses the categories of the anthropologist’s culture to describe the culture under study.

evolutionary-ecological model A paradigm of human culture that combines both the neoevolutionary and ecological perspectives.

Exogamy A cultural rule that dictates that one must marry outside of a designated group (e.g., outside of one’s lineage, clan, or village).

experimental archaeology An aspect of archae- ology in which experiments are performed to learn how prehistoric artifacts and features were made and used.

extended family Two or more nuclear families who are related by blood and who reside in the same household, village, or territoryfamily band A type of band organization con- sisting of nuclear family units that move inde- pendently within an area. Joins others when resources are plentiful; travels alone at other times.

family of orientation A person’s childhood fam- ily, where enculturation takes place.

family of procreation A kin group consisting of an individual and the individual’s spouse and children.

features Nonportable evidence of technology at archaeological sites, such as roadways and fire hearths.

fiat money Paper currency backed by a nation- state’s claim of its value.

fictive kin Unrelated family friends who are addressed by kin terms.

Folate A metabolite essential for sperm and em- bryonic neural tube development that is de - stroyed by UVB.

Foraging A food-procurement strategy that involves collecting wild plant and animal foods.

forensic anthropologist An applied biological anthropologist concerned with legal issues. Frequently focuses on the identification of skeletal
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Sustainability [18 May 2010|07:54am]
“Sustainable development meets the needs of the present without compromising the ability of the future generations to meet their own needs.”

sustainable solutions:
Nutrient Management
Fisheries
Atmosphere
 
Energy


Nutrient management
Agriculture
Forestry
 
Water Use

Sustainable Agriculture
Management practices that conserve soil & water
contour plowing
strip farming
perennial crops
cover crops
 
reduced tillage systems

SUSTAINABLE FORESTRY
mixed perennial polyculture
tropical milpa plots
forest preserves
reforestation projects
forest management
strip cutting
selective cutting


PAPER MANAGEMENT
Office supplies
Office paper (approx. 80,000 sheets / tree)
Personal paper use


SUSTAINABLE WATER USE
watershed management
buffer zones
conservation
appropriate irrigation
drip irrigation

SUSTAINABLE FISHERIES
Food safety advisories
Aquaculture
Ecosystem Based Management Strategies


ATMOSHPHERE

Clean Air Act
Montreal Protocol
Kyoto Protocol


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Population Growth [18 May 2010|07:48am]
nStudy of statistical change in human populations
nSize
nDensity/distribution
nAge

nFor all populations:
nG = (B-D) + (I-E)
nG: growth rate
nB: births, D: deaths
nI: immigration, E: emigration
 
nIf any factor changes à growth rate changes
 

nSex ratio
nFertility:
nNumber of offspring produced by each female

Total Fertility Rate (TFR):

  average number children per female

Replacement Fertility:

  TFR that keep population stable

  For Humans: 2.1

nIPAT model
nProposed by Ehrlich 1974
nI = environmental Impact
nP = Population
nA = Affluence
 

nT = Technology

 




n“Each year more than 500,000 women, 99 percent of them in developing countries, lose their lives to preventable complications of pregnancy and childbirth.”
n
“6.5 million infant deaths each year, 98 percent of these deaths occur in developing countries
nFacts from USAID
nEvery minute:
n380 women become pregnant
n110 experience complications related to their pregnancies
n40 experience unsafe abortions
n
nMaternal mortality is highest in countries where women have little access to modern contraception.
nIn Ethiopia, 2 percent of women use modern contraception and the risk of maternal death is 1 in 9.
nIn Brazil, where nearly 3/4ths of women use birth control, maternal mortality rates are 1 in 130.
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,mhlkjh [17 May 2010|05:11pm]

Dewey's:

 

1. Define the problem - what is the problem? What elements  must be discussed and evaluated? Be clear.

 

2. Narrow the problem.

 

3. Analyze the Issue - research and gather background information, examine the issue from different perspectives.

 

4. Establish criteria for the solution - what are the guidelines for a workable solution? you must establish these criteria. 

 

5. suggest possible solution.

 

6. Apply criteria to the solutions. Examine each solution as it compares and relates to your cirteria. Does it match? does it work well? does it apply? does it not work?

 

7. Implement the solution of your choice - explain why it's the best solution.

 

8. monitor the success of the solution. have a follw up plan in place. determine if the plan is working.

 

Groups:

 

-have shared goals, continual interaction, limited size (3-8), limited time period, sense of leadership, can be fixed, established, can flow and change during the course of the group

 

BUILDING CREDIBILITY
     USING EVIDENCE examples, statistics, testimonies 

     REASONING deductive, inductive, analogical, causual


     COMMON FALLACIES don't generalize, language fallacies


     MOTIVATIONAL APPEALS emotional security, reassurance, gratification, sense of power,

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[06 May 2010|07:48am]

Big Men Alternate term for headmen common in Melanesian societies. See headmen.

bilateral descent Descent that is traced equally through both mother and father.

bilocal residence The condition in which a newly married couple reside either with or near the groom’s parents or the bride’s parents.

biological anthropology A subfield of anthro- pology that studies humans as a biological spe- cies. Also called physical anthropology.

Biped An animal that walks on two legs.

Bridewealth A form of marriage finance in which valuable gifts are given by the groom’s kin to the bride’s kin.

carrying capacity The maximum population that a habitat can sustain.

Caste A ranked group with membership deter- mined at birth.

Chiefdom A type of society with an office of chief, most commonly hereditary; social rank- ing; and a redistributive economy.

Clan A descent group consisting of two or more lineages that trace their origin to a mythical ancestor.

class A group of people who have a similar rela- tionship to wealth, power, and prestige.

Cline The variation of a biological trait along a geographic continuum. Human skin pigments show distribution along a cline from the equa- tor north and south.

Colonialism Influence and dominance of one nation over another for the purpose of exploit- ing raw resources. The dominant nation-state establishes a physical presence and a colonial government. See imperialism; hegemony.

commodity money Currency in the form of valued objects such as shells or gold.

Community An association of people who share a common identity, including geographic boun - daries, common language, and culture.

comparative method The methodological ap- proach of comparing data. Anthropologists use

the comparative method.

consanguineal relatives Kin related by blood.

contagious magic A type of magic based on the idea that something that has contact with a person or animal contains some essence of that being and that magic performed on the item will have the same effect as if performed on the being.

contemporary human variation studies The study of the biological variation in living humans.

cross-cousin Ego’s mother’s brother’s child and father’s sister’s child.

cultural anthropology A subfield of anthro- pology that focuses on human sociocultural adaptations.

cultural ecology The study of the processes by which a society adapts to its environment. cultural evolution A model for the develop- ment of society that delineates a sequence of cultural change over time.

cultural relativism The perspective that any aspect of a culture must be viewed and evalu- ated within the context of that culture.

cultural resource management (CRM) The conservation and management of archaeologi- cal sites to protect them.

Culture The sum total of the knowledge, ideas, behaviors, and material creations that are learned, shared, and transmitted primarily through the symbolic system of language. These components create a pattern (that changes over time) and serve as guides and standards of behavior for members of the society. The term culture is used in the abstract as well as to refer to a specific culture.

culture shock A label for the resultant feelings of homesickness, disorientation, helplessness, and frustration that occur after exposure to an unfamiliar culture.descent group A group of people who share identity and come from a common ancestor. descriptive linguistics The part of anthropo- logical linguistics that focuses on the mechan- ics of language.

Deviance The violation of an ideal pattern of behavior within a society.

Diffusion The voluntary borrowing and exchange of items or ideas between cultures.

Diffusionism Early theoretical school that ex- plained the origin and spread of artifacts and ideas through borrowing between cultures.

displacement The ability of humans to com- municate symbolically about distant time and

place.

division of labor The manner of dividing work based on criteria such as age or gender.

double descent A descent system with two sep- arate lines of descent that are both recognized at the same time.

Dowry A form of marriage finance in which valuable gifts are given by the bride’s kin to the

groom’s kin.

ecofacts The remains of plants, animals, or nat- urally occurring nonorganic substances.

ecological model A model that views a culture as part of a larger global ecological system with each aspect of the system interacting with all of the other parts.

Egalitarian Refers to members of a society hav- ing equal access to status, power, and wealth within the same category such as age or gender.

egalitarian society A society in which individ- uals within the same category of age and gen- der have equal access to wealth, prestige, and power.

Emic  An insider’s view of a culture. This per- spective in ethnography uses the categories and ideas that are relevant and meaningful to the culture under study.

Enculturation The process of learning one’s culture while growing up in it.

Endogamy A cultural rule that dictates that one must marry within a designated group.

ethnic group A type of subculture character- ized by members sharing a culture of origin, often one originating in another country.

ethnoarchaeologyThe study of contemporary societies’ behaviors and uses of material objects in order to better understand how human behav- ior translates into the archaeological record.

Ethnocentrism Making value judgments based on one’s own culture when describing aspects of another culture.

Ethnography A written description of a culture based on data gathered from fieldwork.

ethnolinguistics  A field of study in linguistics that analyzes the relationship between a lan- guage and culture.

Ethnology The comparative study of cultures with the aim of presenting analytical general- izations about human culture.

Ethnomusicology The study of the music of a contemporary society within the context of that society.

Etic  An outsider’s view of a culture. This per- Spective in ethnography uses the categories of the anthropologist’s culture to describe the culture under study.

evolutionary-ecological model A paradigm of human culture that combines both the neoevolutionary and ecological perspectives.

Exogamy A cultural rule that dictates that one must marry outside of a designated group (e.g., outside of one’s lineage, clan, or village).

experimental archaeology An aspect of archae- ology in which experiments are performed to learn how prehistoric artifacts and features were made and used.

extended family Two or more nuclear families who are related by blood and who reside in the same household, village, or territoryfamily band A type of band organization con- sisting of nuclear family units that move inde- pendently within an area. Joins others when resources are plentiful; travels alone at other times.

family of orientation A person’s childhood fam- ily, where enculturation takes place.

family of procreation A kin group consisting of an individual and the individual’s spouse and children.

features Nonportable evidence of technology at archaeological sites, such as roadways and fire hearths.

fiat money Paper currency backed by a nation- state’s claim of its value.

fictive kin Unrelated family friends who are addressed by kin terms.

Folate A metabolite essential for sperm and em- bryonic neural tube development that is de - stroyed by UVB.

Foraging A food-procurement strategy that involves collecting wild plant and animal foods.

forensic anthropologist An applied biological anthropologist concerned with legal issues. Frequently focuses on the identification of skeletal material and the cause of death.

formal interviews An ethnographic research method in which planned, scripted questions are asked of informants.

gender The sociocultural construct of masculine and feminine roles and the qualities assigned to these roles.

gender role The tasks and behaviors assigned by a culture to each sex.

genealogical method The ethnographic meth od of recording information about kinship relationships using symbols and diagrams.

generalized reciprocity Institutionalized gift giving and exchange between close kin; ac- counts are not kept, and there is no expecta- tion of immediate return.

globalizationIn anthropology, the rapid spread of economic, social, and cultural systems

across continents.

half-marriageA custom among the Yurok of northwestern California and other patri- centered groups in which a man pays partial bridewealth and lives with the bride’s family, and the couple’s children belong to the wife and her family.

Headmen Types of leaders found in tribal and chiefdom societies whose leadership is based

on persuasive power. See Big Men.

Hegemony The ideological domination by one

cultural group over another through institu-

tions, bureaucracy, education, and sometimes

force. See imperialism; colonialism.

heliocentric diffusionism Diffusionist school

that pointed to ancient Egypt as the center

of cultural innovations and inventions that

spread around the world.

heterogeneous culture Cultural group that

shares only a few components. Typical of

large societies such as states, where there are

many subcultures such as ethnic groups.

heterosexualitySexual attraction between mem-

bers of the opposite sex.

historical archaeology A subfield of archaeol-

ogy that studies the remains of cultures that

existed during the time of written records but

about which little was recorded.

historical linguistics The study of the history

of languages, including their development

and relationship to other languages.

historicalismTheoretical school, established by

Franz Boas, who hypothesized that each cul-

ture had its own particular history that could

be documented through repeated ethnogra-

phies. Comparisons of many such 

histories.

change. Also termed historical particularism;

American historicalism.

holistic An integrated perspective that assumes

interrelationships among the parts of a sub-

ject. Anthropology studies humans from a

holistic perspective, including both biological

and cultural aspects.

homogeneous culture Cultural group that

shares most ideas, values, knowledge, behav-

iors, and artifacts. Typical of small cultural

groups such as foragers.

Homo sapiens The taxonomic designation for

humans.

homosexualitySexual attraction between mem-

bers of the same sex.

horticultureA food-procurement strategy based

on crop production without soil preparation,

fertilizers, irrigation, or use of draft animals.

householdA common residence-based eco-

nomic unit.

humanistic anthropology A label for research

that focuses on individuals and their creative

responses to cultural and historical forces.

ideal culture What people believe they should

do.

imitative magic A type of magic based on the

notion that working magic on an image of an

animal or person will cause the same effect on

the actual animal or person.

impact studies Ethnographic study of a situa-

tion to document effects of change. May take

place during and/or after a program of cul-

tural restructuring.

imperialismInfluence and authority of one

nation over another, often associated with ex-

ploitation of natural and human resources.

See colonialism; hegemony.

informal interviews An ethnographic research

method using open-ended questions that al-

low informants to talk about what they deem

important.

informants Native members of a society who

give information about their culture to an

ethnographer.

innovationSomething totally new.

inventionSomething new that is created based

on items or ideas that already exist.

judgment sample A sample that is chosen based

on the judgment of the ethnographer. Key

informants are chosen using this method.

key informant An ethnographic interview sub-

ject who has been selected by judgment sam-

ple; a knowledgeable native who plays a major

role in teaching the ethnographer about the

informant’s culture.

kindredA term associated with bilateral descent

in which relatives calculate their degree of

relationship to Ego. In a kindred, only sib-

lings share the exact same set of relatives.

kinesics The use of the body to communicate—

gestures, posture, and facial expression.

kinship system The complexity of a culture’s

rules governing the relationships between af-

final and consanguineal kin.

kinship term A word that designates a social

relationship between individuals who are re-

lated by blood or marriage.

lawThe cultural rule formulated by a society

and backed up by sanctions.

levirateA marriage custom in which a widow

marries her deceased husband’s brother.

lexigrams Geometric figure symbols used to

teach apes symbolic communication.

life history The ethnographic method of gath-

ering data based on extensive interviews with

individuals about their memories of their cul-

ture from childhood through adulthood.

life shock A sudden unexpected experience

that causes one to faint, become hysterical, or

vomit. More likely to occur when immersed

in an unfamiliar setting.

lineageA unilineal descent group that traces

its consanguineal relatives back to a common

ancestor.

linguistics A subfield of anthropology that in-

cludes the study of the structure, history, and

social aspects of human language.

low energy budget The expenditure of minimum

energy to acquire the basic needs for survival.

magic The techniques used to manipulate su-

pernatural forces and beings.

mana An impersonal supernatural force that

flows in and out of people and objects.

market exchange The trading of goods and

services through the use of currency.

matrifocal residence A residence group con-

sisting of a woman and her children residing

without co-residence of a husband.

matrilineageA unilineal descent group with

membership passed on through females and

traced to a common female ancestor.

matrilocal residence A postmarriage residence

rule that requires the bride and groom to live

in or near the residence of the bride’s mother.

matri-patrilocal residence A temporary resi-

dence form in which the groom moves to live

with the bride’s family until bridewealth pay-

ments are complete and the couple take up

permanent patrilocal residence.

medical anthropology The study of illness

and health care from the perspective of

anthropology.

melaninA pigment in the outer layer of the

skin. It is responsible for skin color and blocks

UVB from damaging lower layers of the skin.

microcultureThe smallest subgroup within a

culture that shares specific cultural features

such as values or behaviors.

middenArchaeological term to designate an

area of discard; a trash heap.

mobile art Art forms that are not fixed to any

place and can be moved or carried.

moietyAn association that divides a society in

half. Moiety affiliation is inherited unilineally

and carries obligations to other members.

monogamyA form of marriage in which one

woman is married to one man.

monotheistic A belief system that focuses on

one all-powerful supernatural being.

morphemeThe smallest combination of sounds

in human speech that carry a meaning.

multilinear evolution An evolutionary model

of culture emphasizing different development

patterns for societies in different habitats.

narrative ethnography See refl exive ethno

graphy.

nation-stateA group that shares a common

cultural heritage, territory, and legitimate

political structure.

negative reciprocity An economic exchange

aimed at receiving more than is given.

neoevolutionary model A model of cultural ev-

olution based on types of food-

procurement

strategies and the sociocultural adaptations

that resulted from them.

neolocal residence A postmarriage residence

rule that requires the bride and groom to set

up an independent household away from both

sets of parents.

nomadic pastoralism A herding adaptation that

makes the most of available forage for animals

by frequent habitat moves.

nuclear family A group consisting of a married

couple and their children.

Oldowan tools A very early African tool-

making

tradition associated with the first members of

Homo.

optimal-foraging model A model that aims

at understanding how foragers optimize the

gathering of food.

pan-tribal sodality An association group that

crosscuts a tribe and unites tribal members,

not always voluntary. See sodality.

parallel-cousinEgo’s mother’s sister’s child and

father’s brother’s child.

parietal art Art executed on permanent features

such as cave walls, rock shelters, and large

blocks of rock.

participant observation The process of an an-

thro pologist doing ethnographic fieldwork.

participant observer The role of an anthropol-

ogist doing ethnographic fieldwork.

pastoralismA food-producing strategy based

on herding.

patrilineageA unilineal descent group passed

on through males and traced to a common

male ancestor.

patrilocal band A type of band consisting of

related males and their wives and children

who stay together and forage as a group.

patrilocal residence A postmarriage residence

rule that requires the bride and groom to

live in or near the residence of the groom’s

father.

phonemeThe smallest unit of sound in speech

that will indicate a difference in meaning.

phonologyThe general study of the sounds

used in human speech.

phratryA group of two or more clans that have

a tie to one another, often based on a his-

torical relationship; obligations and rights are

expected between clans in this relationship.

physical anthropology See biological anthropology.

plasticityThe pliability or malleability of a bio-

logical feature. An individual’s genetic growth

potential is malleable depending on nutrition,

maternal health, and exposure to sunlight.

polyandryMarriage of one woman to two or

more men.

polygamyMultiple spouse marriage.

polygynyMarriage of one man to two or more

women.

polytheistic A belief system consisting of many

supernatural beings of approximately equal

power.

postmodernismA complex theoretical per-

spective that applies a humanistic approach to

ethnography with a focus on individuals and

their voices.

postmodernist One who uses the paradigm of

postmodernism.

power The ability to influence or cause people

or groups to do certain things that they would

not do otherwise.

prehistoric archaeology The analysis of the ma-

terial remains of cultures that existed before

the time of written records.

priest A full-time supernatural practitioner who

is part of a bureaucracy.

primates Animals in the order Primates; includes

humans, apes, monkeys, and prosimians.

primatologyThe study of nonhuman primates.

prophet A person, usually charismatic, who has

had direct communication with a god. Often

receives a message that articulates a plan of

action for the group.

proxemics The study of the use of space in

communication.

psychological anthropology The study of the

relationship between culture and personality.

quadrupedAn animal that walks on four limbs.

raceBiologically: a group within a species that

shares a cluster of genetically determined

traits. No such trait clusters occur among

Homo sapiens. Culturally: a social construct

based on perceived cultural differences.

random sample A sample method in which all

members of a population have a statistically

equal chance of being chosen.

rank society A society in which the individual’s

access to prestige and wealth is limited by the

number of positions available. A society may

be stratified by rank, such as in a chiefdom.

rapport A harmonious relationship.

real culture What people can be observed to do.

reciprocityA form of exchange that involves the

mutual giving and receiving of food and other

items between people who are socially equal.

recursionA feature of language that allows for

the generation of variation in sentences by

using embedded or added clauses and phrases.

redistributionA system of exchange in which

wealth is reallocated; found in chiefdom and

state societies.

reflexive ethnography An approach to field-

work that focuses on the personal experiences

and perspectives of the ethnographer, as well

as the voices of the native members of a cul-

ture. Also called narrative ethnography.

revitalization movement An organized move-

ment, which occurs during times of change,

that involves perceived loss of traditional cul-

tural values. A prophet or charismatic leader

predicts a revitalized society if a program is

followed.

rites of intensification Rituals, often seasonal,

that reinforce group solidarity, cultural val-

ues, and group social and political status

relationships.

rites of passage Rituals associated with the

social movement of an individual from one

culturally defined role and status to another

during the passage from birth to death.

ritual Behavior that is formalized, is regularly

repeated, and has symbolic content.

roleThe culturally assigned behaviors and ex

-

pectations for a person’s social position.

Sapir-Whorf hypothesis A hypothesis about the

relationship between language and culture that

states that language constructs perceptions.

segmentary lineage A descent group consist-

ing of sublineage sets.

sex The biological aspect of being female, male,

or other, assigned at birth based on external

genitalia.

sexual dimorphism The biological and behav-

ioral differences between males and females.

shabano A Ya˛nomamö village.

shamanA part-time practitioner of the supernat-

ural who has special powers to mediate between

the supernatural world and the community.

silent language All of a culture’s nonverbal

symbolic systems of communication, includ-

ing kinesics and proxemics.

sister exchange A common type of marriage con-

sisting of the marriage of cross-cousins. Men

exchange their sisters as marriage partners.

siteThe location of archaeological remains such

as artifacts and features.

slash and burn The removal of plant materials

by cutting and burning preparatory to plant-

ing. Also called swidden horticulture.

social control A process involving a structure

and mechanisms to ensure that people do

not violate the society’s accepted forms of

behavior.

social stratification Ascribed and achieved dif-

ferences between two classes within a society.

sociolinguistics A subfield of linguistics that

analyzes the relationship between language

and culture with a focus on how people speak

in social contexts.

sodalityA group that crosscuts a society and

whose membership is based on common inter-

est rather than kinship or residence.

sororateA marriage custom in which a widower

marries a sister of his deceased wife.

stateA type of society characterized by a po-

litical structure with authority that is legally

constituted.

status A person’s position in society.

stratified random sample A random sample

with divisions into categories such as age or

socioeconomic level.

stratified society A society with unequal access

to resources within the same gender and sta-

tus group.

stratified state society A society in which institu-

tions are based on coercive power and author-

ity. Inequality exists within social groupings.

string figures A type of entertainment in which

designs, or figures, are created by weaving

string on the fingers. Patterns, tricks, and

catches are performed and are often accom-

panied by stories.

structured interviews See formal interviews.

Subculture Smaller group within a large cul-

tural complex. Behaviors, values, attitudes,

and artifacts are shared by group members.

supernatural beings Invisible beings that exhibit

form, personality, attitudes, and powers.

supernatural belief A belief that transcends the

observable, natural world.

supernatural forces Unseen powers that are

not personified and may be manipulated to

achieve good or evil.

syntax The manner in which minimum units of

meaning (morphemes) are combined.

Technology The knowledge, tools, and skills

used by humans to manipulate their environ

- ments.

Totem Mythical or symbolic ancestor of a clan.

traditions Cultural choices consistently made by a

society and practiced generation to generation.

Transhumance A variety of pastoralism in which

herds are moved seasonally.

Tribe A type of society marked by egalitarian

social structure, based on horticultural and

pastoral economies, and integrated by various

types of kinship organizations and sodalities.

ultraviolet radiation A part of the electromag-

netic energy from the sun that is not visible to

the human eye.

unilineal evolution Early theoretical school

that postulated that all cultures proceeded

through a series of successive stages.

unstructured interviews See informal interviews.

urbanization studies Studies of the adaptations

made by rural peoples as they move to cities.

uterine descent group See matrilineage.

UVBUltraviolet radiation from the sun in the

B wave length.

uxorilocal residence The custom of living with

the wife’s relatives after marriage.

virilocal residence The custom of living with

the husband’s relatives after marriage.

 

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He [06 May 2010|07:11am]

Near the equator, the patterns of convection currents are called

Hadley Cells


The Kyoto Protocol:

was intended to reduce emissions of greenhouse gases to levels lower than those of 1990


Lead enters the atmosphere as a particulate pollutant. This is a problem because it

causes central nervous system malfunction in humans

The largest portion of atmospheric gases  is Nitrogen

The exceptionally strong warming of the eastern Pacific is referred to as: El Nino

Particulate matter dispersed as aerosols : may cause damage to respiratory tissues when inhaled
Seasons are a result of:

differences in the amount and intensity of sunlight brought about by the tilt of the axis


Acidic deposition: 

often crosses national boundaries, creating international disputes


Natural sources of air pollution come from: Volcanic dust and forest fires

Tropospheric zone:

is produced through the interaction of heat and light, with nitrogen oxides and other carbon-containing compounds

Crabon monoxide is:

extremely damaging to human blood

 

Kyoto is to carbon dioxide as Montreal is : chloroflourocarbons

Earth's climate is: is changing as a result of natural and human processes

Weather patterns are largely determined in the: trophosphere

Radon: 

may cause damage to respiratory tissues when inhaled



Air near the earths' surface tends to be :

warmer and wetter; then it rises, expanding and cooling

The dust storms that have large impacts on the Caribbean: are the result of poor farming techniques

Growing rice results in the release of ________ into the atmosphere: Methane

Carbon Dioxide is:

the main anthropogenic greenhouse gas produced in the United States

In developed countries, the two most deadly sources of indoor pollution are : radon and cigarette smoke
As water warms: it expands

The greenhouse effect involves warming of Earth's surface and the: Troposphere

The Intergovernmental Panel on Climate Change :

is an international panel that concluded that climate change has influenced biomes and economies

Reports from Mauna Loa, Hawaii demonstrated : an increase in CO2 from the 1950s to present

One of the problems that occurs as a consequence of CFC pollution is: increasing skin cancer in humans
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Chapter 13 [29 Apr 2010|09:10am]

            Marketing is the process of determining customer wants and needs and then providing customers with goods and services that meet or exceed their expectations.

1. Define marketing and explain how the marketing concept applies in both for-profit and nonprofit organizations.

        How has marketing changed over time?

During the production era, marketing was largely a distribution function. Emphasis was on producing as many goods as possible and getting them to markets. By the early 1920s, during the selling era, the emphasis turned to selling and advertising to persuade customers to buy the existing goods produced by mass production. After World War II, the tremendous demand for goods and services led to the marketing concept era, when businesses recognized the need to be responsive to customers' needs. During the 1990s, marketing entered the customer relationship era. The idea became one of trying to enhance customer satisfaction and stimulate long-term customer loyalty.

        What are the three parts of the marketing concept?

The three parts of the marketing concept are (1) a customer orientation, (2) a service orientation, and (3) a profit orientation (that is, market those goods and services that will earn the firm a profit and enable it to survive and expand to serve more customer wants and needs).

        What kinds of organizations are involved in marketing?

All kinds of organizations use marketing, including both for-profit and nonprofit organizations (states, charities, churches, politicians, schools, etc.).

2.         The marketing mix consists of the four Ps of marketing: product, price, place, and promotion.

2. List and describe the four Ps of marketing.

        How do marketers implement the four Ps?

The idea is to design a product that people want, price it competitively, place it in a location where consumers can find it easily, and promote it so that consumers know it exists.

3.         Marketing research is the analysis of markets to determine opportunities and challenges and to find the information needed to make good decisions.

3.Describe the marketing research process, and explain how marketers use environmental scanning to learn about the changing marketing environment.

        What are the steps to follow when conducting marketing research?

(1) Define the problem and determine the present situation, (2) collect data, (3) analyze the research data, and (4) choose the best solution.

        What is environmental scanning?

Environmental scanning is the process of identifying the factors that can affect marketing success. Marketers pay attention to all the environmental factors that create opportunities and threats.

        What are some of the more important environmental trends in marketing?

The most important global and technological change is probably the growth of the Internet. An important technological change is the growth of consumer databases. Using consumer databases, companies can develop products and services that closely match the needs of consumers. There are a number of social trends that marketers must monitor to maintain their close relationship with customers—population growth and shifts, for example. Of course, marketers must also monitor the dynamic competitive environment and pay attention to the economic environment.

4.         The process of dividing the total market into several groups whose members have similar characteristics is called market segmentation.

4. Explain how marketers meet the needs of the consumer market through market segmentation, relationship marketing, and the study of consumer behaviour.

        What are some of the ways marketers segment the consumer market?

Geographic segmentation means dividing the market into different regions. Segmentation by age, income, and education level are ways of demographic segmentation. We could study a group's values, attitudes, and interests; this segmentation strategy is called psychographic segmentation. Determining which benefits customers prefer and using those benefits to promote a product is called benefit segmentation. Separating the market by usage (volume of use) is called volume segmentation. The best segmentation strategy is to use all the variables to come up with a consumer profile (a target market) that's sizable, reachable, and profitable.

        What is the difference between mass marketing and relationship marketing?

Mass marketing means developing products and promotions to please large groups of people. Relationship marketing tends to lead away from mass production and toward custom-made goods and services. Its goal is to keep individual customers over time by offering them products or services that meet their needs.

        What are some of the factors that influence the consumer decisionmaking process?

See Figure 13.7 on page 367 for some of the major influences on consumer decision making. Some other factors in the process are learning, reference group, culture, subculture, and cognitive dissonance.

5.         The B2B market consists of manufacturers, intermediaries such as retailers, institutions (e.g., hospitals, schools, and charities), and the government.

5. List ways in which the business-to-business market differs from the consumer market.

        What makes the business-to-business market different from the consumer market?

The number of customers in the B2B market is relatively small, and the size of business customers is relatively large. B2B markets tend to be geographically concentrated, and industrial buyers generally are more rational than ultimate consumers in their selection of goods and services. B2B sales tend to be direct, and there is much more emphasis on personal selling in B2B markets than in consumer markets.

benefit segmentation - Dividing the market by determining which benefits of the product to talk about.

brand name - A word, letter, or group of words or letters that differentiates one seller's goods and services from those of competitors.

business-to-business (B2B) market - All the individuals and organizations that want goods and services to use in producing other goods and services or to sell, rent, or supply goods to others.

consumer market - All the individuals or households that want goods and services for personal consumption or use.

customer relationship management (CRM) - The process of learning as much as possible about customers and doing everything you can to satisfy them—or even exceed their expectations—with goods and services over time.

demographic segmentation - Dividing the market by age, income, and education level.

environmental scanning - The process of identifying the factors that can affect marketing success.

focus group  - A small group of people who meet under the direction of a discussion leader to communicate their opinions about an organization, its products, or other given issues.

geographic segmentation - Dividing the market by geographic area.

marketing - The process of planning and executing the conception, pricing, promotion, and distribution of goods and services to facilitate exchanges that satisfy individual and organizational objectives.

marketing concept - A three-part business philosophy: (1) a customer orientation, (2) a service orientation, and (3) a profit orientation.

marketing mix - The ingredients that go into a marketing program: product, price, place, and promotion.

marketing research - The analysis of markets to determine opportunities and challenges, and to find the information needed to make good decisions.

market segmentation - The process of dividing the total market into groups whose members have similar characteristics.

mass marketing - Developing products and promotions to please large groups of people.

niche marketing - The process of finding small but profitable market segments and designing or finding products for them.

one-to-one marketing - Developing a unique mix of goods and services for each individual customer.

primary data - Data that you gather yourself (not from secondary sources such as books and magazines).

product - Any physical good, service, or idea that satisfies a want or need plus anything that would enhance the product in the eyes of consumers, such as the brand.

promotion - All the techniques sellers use to motivate people to buy their products or services.

psychographic segmentation - Dividing the market using the group's values, attitudes, and interests.

relationship marketing - Marketing strategy with the goal of keeping individual customers over time by offering them products that exactly meet their requirements.

secondary data - Information that has already been compiled by others and published in journals and books or made available online.

target marketing - Marketing directed toward those groups (market segments) an organization decides it can serve profitably.

test marketing - The process of testing products among potential users.

volume, or usage, segmentation - Dividing the market by usage (volume of use).

 

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Chapter 14 [29 Apr 2010|09:09am]

1.            A total product offer consists of everything that consumers evaluate when deciding whether to buy something.

1. Explain the concept of a total product offer.

           What's included in a total product offer?

A total product offer includes price, brand name, satisfaction in use, and more.

           What's the difference between a product line and a product mix?

A product line is a group of physically similar products with similar competitors. A product line of gum may include bubble gum and sugarless gum. A product mix is a company's combination of product lines. A manufacturer may offer lines of gum, candy bars, chewing tobacco, and so on.

           How do marketers create product differentiation for their goods and services?

Marketers use a mix of pricing, advertising, and packaging to make their products seem unique and attractive.

2.            Consumer goods are sold to ultimate consumers like you and me and not to businesses.

2. Describe the various kinds of consumer and industrial goods.

           What are the four classifications of consumer goods and services, and how are they marketed?

There are convenience goods and services (requiring minimum shopping effort); shopping goods and services (for which people go searching and compare price and quality); specialty goods and services (which consumers go out of their way to get, and often demand specific brands); and unsought goods and services (products that consumers are unaware of, haven't necessarily thought of buying, or find that they need to solve an unexpected problem). Convenience goods and services are best promoted by location, shopping goods and services by some price/quality appeal, and specialty goods and services by specialty magazines and interactive Web sites.

           What are industrial goods, and how are they marketed differently from consumer goods?

Industrial goods are products sold in the business-to-business market (B2B), and are used in the production of other products. They're sold largely through salespeople and rely less on advertising. Installations are major capital equipment such as new factories and heavy machinery. Accessory equipment is capital items that are not quite as long-lasting or as expensive as installations. Examples include computers, photocopy machines, and various tools.

3.            Packaging changes the product and is becoming increasingly important, taking over much of the sales function for consumer goods.

3.List and describe the functions of packaging.

           What are the six functions of packaging?

The six functions are (1) to protect the goods inside, stand up under handling and storage, be tamperproof, deter theft, and yet be easy to open and use; (2) to describe the contents; (3) to explain the benefits of the product inside; (4) to provide information on warranties, warnings, and other consumer matters; (5) to indicate price, value, and uses; and (6) to attract the buyer's attention.

4.            Branding also changes a product.

4. Describe the differences among a brand, a brand name, and a trademark, and explain the concepts of brand equity and brand loyalty.

           Can you give examples of a brand, a brand name, and a trademark?

One example of a brand name of crackers is Waverly by Nabisco. The brand consists of the name Waverly as well as the symbol (a red triangle in the corner with Nabisco circled in white). The brand name and the symbol are also trademarks, since Nabisco has been given legal protection for this brand. Manufacturers need to protect their brand names from competitors who try to steal their name or image.

           What is brand equity, and how do managers create brand associations?

Brand equity is the combination of factors such as awareness, loyalty, perceived quality, images, and emotions people associate with a given brand name. Brand association is the linking of a brand to other favorable images. For example, you can link a brand to other product users, to a popular celebrity, to a particular geographic area, or to competitors.

5.            Brand managers coordinate product, price, place, and promotion decisions for a particular product.

5. Explain the role of brand managers and the steps of the new-product development process.

           What are the six steps of the product development process?

The steps are (1) generation of new-product ideas, (2) product screening, (3) product analysis, (4) development, (5) testing, and (6) commercialization.

6.            Once a product is placed on the market, marketing strategy varies as the product class goes through various stages of acceptance called the product life cycle.

6. Draw the product life cycle, describe each of its stages, and describe marketing strategies at each stage.

           What are the theoretical stages of the product life cycle?

They are introduction, growth, maturity, and decline.

           How do marketing strategies theoretically change at the various stages?

See Figures 14.4 and 14.5 on pages 390 and 391.

7.            Pricing is one of the four Ps of marketing.

7. Explain various pricing objectives and strategies.

           What are pricing objectives?

Objectives include achieving a target profit, building traffic, increasing market share, creating an image, and meeting social goals.

           What's the break-even point?

At the break-even point, total cost equals total revenue. Sales beyond that point are profitable.

           What strategies can marketers use to determine a product's price?

A skimming price strategy is one in which the product is priced high to make optimum profit while there's little competition, whereas a penetration strategy is one in which a product is priced low to attract more customers and discourage competitors. Demand-oriented pricing is based on consumer demand rather than cost. Competition-oriented pricing is based on all competitors' prices. Price leadership occurs when all competitors follow the pricing practice of one or more dominant companies. Bundling means grouping two or more products into a unit and charging one price for them.

8.            In spite of the emphasis placed on price in microeconomic theory, marketers often compete on product attributes other than price.

8. Explain why nonpricing strategies are growing in importance.

           Why do companies use nonprice strategies?

Pricing is one of the easiest marketing strategies to copy. Therefore, often it is not a good long-run competitive tool. Instead, marketers may compete using nonprice strategies that are less easy to copy, including offering great service, educating consumers, and establishing long-term relationships with customers.

brand - A name, symbol, or design (or combination thereof) that identifies the goods or services of one seller or group of sellers and distinguishes them from the goods and services of competitors.

brand association - The linking of a brand to other favorable images.

brand awareness - How quickly or easily a given brand name comes to mind when a product category is mentioned.

brand equity - The combination of factors—such as awareness, loyalty, perceived quality, images, and emotions—that people associate with a given brand name.

brand loyalty - The degree to which customers are satisfied, like the brand, and are committed to further purchase.

brand manager - A manager who has direct responsibility for one brand or one product line; called a product manager in some firms.

break-even analysis - The process used to determine profitability at various levels of sales.

bundling - Grouping two or more products together and pricing them as a unit.

commercialization - Promoting a product to distributors and retailers to get wide distribution, and developing strong advertising and sales campaigns to generate and maintain interest in the product among distributors and consumers.

competition-based pricing - A pricing strategy based on what all the other competitors are doing. The price can be set at, above, or below competitors' prices.

concept testing - Taking a product idea to consumers to test their reactions.

convenience goods and services - Products that the consumer wants to purchase frequently and with a minimum of effort.

dealer (private-label) brands - Products that don't carry the manufacturer's name but carry a distributor or retailer's name instead.

everyday low pricing (EDLP) - Setting prices lower than competitors and then not having any special sales.

generic goods - Nonbranded products that usually sell at a sizable discount compared to national or private-label brands.

high-low pricing strategy - Setting prices that are higher than EDLP stores, but having many special sales where the prices are lower than competitors'.

industrial goods - Products used in the production of other products. Sometimes called business goods or B2B goods.

knockoff brands - Illegal copies of national brand-name goods.

manufacturers' brand names - The brand names of manufacturers that distribute products nationally.

penetration strategy - Strategy in which a product is priced low to attract many customers and discourage competition.

price leadership - The procedure by which one or more dominant firms set the pricing practices that all competitors in an industry follow.

product analysis - Making cost estimates and sales forecasts to get a feeling for profitability of new-product ideas.

product differentiation - The creation of real or perceived product differences.

product life cycle - A theoretical model of what happens to sales and profits for a product class over time.

product line - A group of products that are physically similar or are intended for a similar market.

product mix - The combination of product lines offered by a manufacturer.

product screening - A process designed to reduce the number of new-product ideas being worked on at any one time.

psychological pricing - Pricing goods and services at price points that make the product appear less expensive than it is.

shopping goods and services - Those products that the consumer buys only after comparing value, quality, price, and style from a variety of sellers.

skimming price strategy - Strategy in which a new product is priced high to make optimum profit while there's little competition.

specialty goods and services - Consumer products with unique characteristics and brand identity. Because these products are perceived as having no reasonable substitute, the consumer puts forth a special effort to purchase them.

target costing - Designing a product so that it satisfies customers and meets the profit margins desired by the firm.

total fixed costs - All the expenses that remain the same no matter how many products are made or sold.

total product offer - Everything that consumers evaluate when deciding whether to buy something; also called a value package.

trademark - A brand that has been given exclusive legal protection for both the brand name and the pictorial design.

unsought goods and services - Products that consumers are unaware of, haven't necessarily thought of buying, or find that they need to solve an unexpected problem.

value - Good quality at a fair price. When consumers calculate the value of a product, they look at the benefits and then subtract the cost to see if the benefits exceed the costs.

variable costs - Costs that change according to the level of production.

 

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Chapter 12 [15 Apr 2010|04:50pm]

      What was the first union?

The cordwainers (shoemakers) organized a craft union of skilled specialists in 1792. The Knights of Labor, which was formed in 1869, was the first national labor organization.

      How did the AFL-CIO evolve?

The American Federation of Labor (AFL), formed in 1886, was an organization of craft unions. The Congress of Industrial Organizations (CIO), a group of unskilled and semiskilled workers, broke off from the AFL in 1935. Over time, the two organizations saw the benefits of joining together and became the AFL-CIO in 1955. The AFL-CIO is a federation of labor unions, not a national union.

      What are the provisions of the major legislation affecting labor unions?

See Figure 12.1 on page 325.

3.     The objectives of labor unions shift in response to changes in social and economic trends.

3.     Outline the objectives of labor unions.

      What topics typically appear in labor-management agreements?

See Figure 12.3 on page 328.

      What are the tactics used by unions and management in conflicts?

Unions can use strikes and boycotts. Management can use injunctions and lockouts.

      What will unions have to do to cope with declining membership?

In order to grow, unions will have to adapt to an increasingly white-collar, female, and culturally diverse workforce. To help keep American businesses competitive in international markets, unions must soften their historic “us-versus-them” attitude and build a new “we” attitude with management. Unions also will have to find a new sense of harmony in its own ranks.

      What is a fair wage for managers?

The market and the businesses in it set managers' salaries. What is fair is open to debate. The top executives of the 100 largest public companies were paid, on average, $36 million in 2005.

      How is equal pay and pay equity different?

The Equal Pay Act of 1963 provides that workers receive equal pay for equal work (with exceptions for seniority, merit, or performance). Pay equity is the demand for equivalent pay for jobs requiring similar levels of education, training, and skills. At one time some suggested implementing a system called comparable worth.

      Isn't pay inequity caused by sexism?

There is some evidence that supports that statement and counterarguments that refute the charge. It's believed that education and training lead to pay equity, but that is not always the case.

      How are some companies addressing the child care issue?

Responsive companies are providing child care on the premises, emergency care when scheduled care is interrupted, discounts with child care chains, vouchers to be used at the employee's chosen care center, and referral services.

      What is elder care, and what problems do companies face with regard to this growing problem?

Workers with older parents or other relatives often need to find some way to care for them. It's becoming a problem that will perhaps outpace the need for child care. Workers who need to care for dependent parents are generally more experienced and vital to the mission of the organization than younger workers are. The cost to business is very large and growing.

      Why are more and more companies now testing workers and job applicants for substance abuse?

Nearly 8 percent of employed adults between the ages of 18 and 49 in the United States are believed to be current illicit drug users. Individuals who use drugs are three and a half times more likely to be involved in workplace accidents and five times more likely to file a workers' compensation claim than those who do not use drugs.

agency shop agreement - Clause in a labor-management agreement that says employers may hire nonunion workers; employees are not required to join the union but must pay a union fee.

American Federation of Labor (AFL) - An organization of craft unions that championed fundamental labor issues; founded in 1886.

arbitration - The agreement to bring in an impartial third party (a single arbitrator or a panel of arbitrators) to render a binding decision in a labor dispute.

bargaining zone - The range of options between the initial and final offer that each party will consider before negotiations dissolve or reach an impasse.

certification - Formal process whereby a union is recognized by the National Labor Relations Board (NLRB) as the bargaining agent for a group of employees.

closed shop agreement - Clause in a labor-management agreement that specified workers had to be members of a union before being hired (was outlawed by the Taft-Hartley Act in 1947).

collective bargaining - The process whereby union and management representatives form a labor-management agreement, or contract, for workers.

Congress of Industrial Organizations (CIO) - Union organization of unskilled workers; broke away from the American Federation of Labor (AFL) in 1935 and rejoined it in 1955.

cooling-off period - When workers in a critical industry return to their jobs while the union and management continue negotiations.

craft union - An organization of skilled specialists in a particular craft or trade.

decertification - The process by which workers take away a union's right to represent them.

givebacks - Concessions made by union members to management; gains from labor negotiations are given back to management to help employers remain competitive and thereby save jobs.

grievance - A charge by employees that management is not abiding by the terms of the negotiated labor-management agreement.

industrial unions - Labor organizations of unskilled and semiskilled workers in mass-production industries such as automobiles and mining.

injunction - A court order directing someone to do something or to refrain from doing something.

Knights of Labor - The first national labor union; formed in 1869.

lockout - An attempt by management to put pressure on unions by temporarily closing the business.

mediation - The use of a third party, called a mediator, who encourages both sides in a dispute to continue negotiating and often makes suggestions for resolving the dispute.

 

negotiated labor-management agreement (labor contract) -Agreement that sets the tone and clarifies the terms under which management and labor agree to function over a period of time.

open shop agreement - Agreement in right-to-work states that gives workers the option to join or not join a union, if one exists in their workplace.

primary boycott - When a union encourages both its members and the general public not to buy the products of a firm involved in a labor dispute.

right-to-work laws - Legislation that gives workers the right, under an open shop, to join or not join a union if it is present.

secondary boycott - An attempt by labor to convince others to stop doing business with a firm that is the subject of a primary boycott; prohibited by the Taft-Hartley Act.

sexual harassment - Unwelcome sexual advances, requests for sexual favors, and other conduct (verbal or physical) of a sexual nature that creates a hostile work environment.

shop stewards - Union officials who work permanently in an organization and represent employee interests on a daily basis.

strike - A union strategy in which workers refuse to go to work; the purpose is to further workers' objectives after an impasse in collective bargaining.

strikebreakers - Workers hired to do the jobs of striking workers until the labor dispute is resolved.

union - An employee organization that has the main goal of representing members in employee-management bargaining over job-related issues.

union security clause - Provision in a negotiated labor-management agreement that stipulates that employees who benefit from a union must either officially join or at least pay dues to the union.

union shop agreement - Clause in a labor-management agreement that says workers do not have to be members of a union to be hired, but must agree to join the union within a prescribed period.

yellow-dog contract - A type of contract that required employees to agree as a condition of employment not to join a union; prohibited by the Norris-LaGuardia Act in 1932.

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Chapter 11 [15 Apr 2010|04:49pm]

Human resource management is the process of evaluating human resource needs, finding people to fill those needs, and getting the best work from each employee by providing the right incentives and job environment, all with the goal of meeting organizational objectives.

           What are some of the current challenges and opportunities in the human resource area?

Many of the current challenges and opportunities revolve around the changing demographics of workers: more women, minorities, immigrants, and older workers. Other challenges concern a shortage of trained workers and an abundance of unskilled workers, skilled workers in declining industries requiring retraining, changing employee work attitudes, and complex laws and regulations.

 

           What are the steps in human resource planning?

The five steps are (1) preparing a human resource inventory of the organization's employees; (2) preparing a job analysis; (3) assessing future demand; (4) assessing future supply; and (5) establishing a plan for recruiting, hiring, educating, appraising, compensating, and scheduling employees.

           What methods do human resource managers use to recruit new employees?

Recruiting sources are classified as either internal or external. Internal sources include hiring from within the firm (transfers, promotions, etc.) and employees who recommend others to hire. External recruitment sources include advertisements, public and private employment agencies, college placement bureaus, management consultants, professional organizations, referrals, walk-in applications, and the Internet.

           Why has recruitment become more difficult?

Legal restrictions complicate hiring and firing practices. Finding suitable employees can also be made more difficult if companies are considered unattractive workplaces.

           What are the six steps in the selection process?

The steps are (1) obtaining complete application forms, (2) conducting initial and follow-up interviews, (3) giving employment tests, (4) conducting background investigations, (5) obtaining results from physical exams, and (6) establishing a trial period of employment.

           What are some of the activities used for training?

After assessing the needs of the organization and the skills of the employees, training programs are designed that may include the following activities: employee orientation, on- and off-the-job training, apprentice programs, online training, vestibule training, and job simulation. The effectiveness of the training is evaluated at the conclusion of the activities.

           What methods are used to develop managerial skills?

Management development methods include on-the job-coaching, understudy positions, job rotation, and off-the-job courses and training.

           How does networking fit in this process?

Networking is the process of establishing contacts with key managers within and outside the organization to get additional development assistance.

           How is performance evaluated?

The steps are (1) establish performance standards; (2) communicate those standards; (3) evaluate performance; (4) discuss results; (5) take corrective action when needed; and (6) use the results for decisions about promotions, compensation, additional training, or firing.

           What kind of compensation systems are used?

They include salary systems, hourly wages, piecework, commission plans, bonus plans, profit-sharing plans, and stock options. Known as the Hay system, this compensation plan is based on job tiers, each of which has a strict pay range.

           What types of compensation systems are appropriate for teams?

The most common are gains-sharing and skill-based compensation programs. It is also important to reward outstanding individual performance within teams.

           What are fringe benefits?

Fringe benefits include such items as sick leave, vacation pay, pension plans, and health plans that provide additional compensation to employees beyond base wages. Many firms offer cafeteria-style fringe benefits plans, in which employees can choose the benefits they want, up to a certain dollar amount.

 

           What scheduling plans can be used to adjust to employees' need for flexibility?

Such plans include job sharing, flextime, compressed workweeks, and working at home.

           How can employees move within a company?

Employees can be moved up (promotion), over (reassignment), or out (termination or retirement) of a company. Employees can also choose to leave a company to pursue opportunities elsewhere.

affirmative action - Employment activities designed to “right past wrongs” by increasing opportunities for minorities and women.

apprentice programs - Training programs involving a period during which a learner works alongside an experienced employee to master the skills and procedures of a craft.

cafeteria-style fringe benefits - Fringe benefits plan that allows employees to choose the benefits they want up to a certain dollar amount.

compressed workweek - Work schedule that allows an employee to work a full number of hours per week but in fewer days.

contingent workers - Workers who do not have the expectation of regular, full-time employment.

core time - In a flextime plan, the period when all employees are expected to be at their job stations.

employee orientation - The activity that introduces new employees to the organization; to fellow employees; to their immediate supervisors; and to the policies, practices, and objectives of the firm.

flextime plan - Work schedule that gives employees some freedom to choose when to work, as long as they work the required number of hours.

fringe benefits - Benefits such as sick-leave pay, vacation pay, pension plans, and health plans that represent additional compensation to employees beyond base wages.

human resource management - The process of determining human resource needs and then recruiting, selecting, developing, motivating, evaluating, compensating, and scheduling employees to achieve organizational goals.

job analysis - A study of what is done by employees who hold various job titles.

job description - A summary of the objectives of a job, the type of work to be done, the responsibilities and duties, the working conditions, and the relationship of the job to other functions.

job sharing - An arrangement whereby two part-time employees share one full-time job.

job simulation - The use of equipment that duplicates job conditions and tasks so that trainees can learn skills before attempting them on the job.

job specifications - A written summary of the minimum qualifications required of workers to do a particular job.

management development - The process of training and educating employees to become good managers and then monitoring the progress of their managerial skills over time.

mentor - An experienced employee who supervises, coaches, and guides lower-level employees by introducing them to the right people and generally being their organizational sponsor.

networking - The process of establishing and maintaining contacts with key managers in one's own organization and other organizations and using those contacts to weave strong relationships that serve as informal development systems.

off-the-job training - Training that occurs away from the workplace and consists of internal or external programs to develop any of a variety of skills or to foster personal development.

performance appraisal - An evaluation in which the performance level of employees is measured against established standards to make decisions about promotions, compensation, additional training, or firing.

recruitment - The set of activities used to obtain a sufficient number of the right people at the right time.

reverse discrimination - Discrimination against whites or males in hiring or promoting.

selection - The process of gathering information and deciding who should be hired, under legal guidelines, for the best interests of the individual and the organization.

training and development - All attempts to improve productivity by increasing an employee's ability to perform. Training focuses on short-term skills, whereas development focuses on long-term abilities. that used on the job.

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Chapter 10 [15 Apr 2010|04:48pm]

Frederick Taylor has been called the father of scientific management. He did time-motion studies to learn the most efficient way of doing a job and then trained workers in those procedures. He published his book The Principles of Scientific Management in 1911. Henry L. Gantt and Frank and Lillian Gilbreth were followers of Taylor.

The greatest impact on motivation theory was generated by the Hawthorne studies in the late 1920s and early 1930s. In these studies, Elton Mayo found that human factors such as feelings of involvement and participation led to greater productivity gains than did physical changes in the workplace.

Abraham Maslow studied basic human motivation and found that motivation was based on needs; he said that a person with an unfilled need would be motivated to satisfy it and that a satisfied need no longer served as motivation.     

What were the various levels of need identified by Maslow?

Starting at the bottom of Maslow's hierarchy of needs and going to the top, the levels of need are physiological, safety, social, esteem, and self-actualization.

           Can managers use Maslow's theory?

Yes, they can recognize what unmet needs a person has and design work so that it satisfies those needs.

Frederick Herzberg found that some factors are motivators and others are hygiene (or maintenance) factors; hygiene factors cause job dissatisfaction if missing but are not motivators if present.

           What are the factors called motivators?

The work itself, achievement, recognition, responsibility, growth, and advancement.

           What are hygiene (maintenance) factors?

Factors that do not motivate but must be present for employee satisfaction, such as company policies, supervision, working conditions, interpersonal relations, and salary.

           What characteristics of work affect motivation and performance?

The job characteristics that influence motivation are skill variety, task identity, task significance, autonomy, and feedback.

           Name two forms of job enrichment that increase motivation.

Job enrichment strategies include job enlargement and job rotation.

Douglas McGregor held that managers will have one of two opposing attitudes toward employees. They are called Theory X and Theory Y. William Ouchi introduced Theory Z.

           What is Theory X?

Theory X assumes that the average person dislikes work and will avoid it if possible. Therefore, people must be forced, controlled, and threatened with punishment to accomplish organizational goals.

           What is Theory Y?

Theory Y assumes that people like working and will accept responsibility for achieving goals if rewarded for doing so.

           What is Theory Z?

Theory Z comes out of Japanese management and stresses long-term employment; collective decision making; individual responsibility; slow evaluation and promotion; implicit, informal control with explicit, formalized control; moderately specialized career paths; and a holistic concern for employees (including family).

Goal-setting theory is based on the notion that setting ambitious but attainable goals will lead to high levels of motivation and performance if the goals are accepted, accompanied by feedback, and facilitated by organizational conditions.

           What is management by objectives (MBO)?

MBO is a system of goal setting and implementation that involves a cycle of discussion, review, and evaluation of objectives among top and middle-level managers, supervisors, and employees.

Victor Vroom's expectancy theory says, employee expectations can affect an individual's motivation.

           What are the key elements involved in expectancy theory?

Expectancy theory centers on three questions employees often ask about performance on the job: (1) Can I accomplish the task? (2) If I do accomplish it, what's my reward? and (3) Is the reward worth the effort?

           What are the variables in reinforcement theory?

Positive reinforcers are rewards like praise, recognition, or raises that a worker might strive to receive after performing well. Negative reinforcers are punishments such as reprimands, pay cuts, or firing that a worker might be expected to try to avoid.

           According to equity theory, employees try to maintain equity between in puts and outputs compared to other employees in similar positions. What happens when employees perceive that their rewards are not equitable?

If employees perceive that they are underrewarded, they will either reduce their effort or rationalize that it isn't important. If they perceive that they are overrewarded, they will either increase their effort to justify the higher reward in the future or rationalize by saying, “I'm worth it!” Inequity leads to lower productivity, reduced quality, increased absenteeism, and voluntary resignation.

Companies with highly motivated workforces often have open communication systems and self-managed teams.

           Why is open communication so important in building effective self-managed teams?

Open communication helps both top managers and team members understand the objectives and work together to achieve them. Teams establish an environment in which learning can happen because most learning happens at the peer level.

           How are Generation X managers likely to be different from their baby boomer predecessors?

Baby boomers are willing to work long hours to build their careers and often expect their subordinates to do likewise. Gen Xers strive for a more balanced lifestyle and are likely to focus on results rather than on how many hours their teams work. Gen Xers are better than previous generations at working in teams and providing frequent feedback. They are not bound by traditions that may constrain those who have been with an organization for a long time and are willing to try new approaches to solving problems.

 

equity theory - The idea that employees try to maintain equity between inputs and outputs compared to others in similar positions.

expectancy theory - Victor Vroom's theory that the amount of effort employees exert on a specific task depends on their expectations of the outcome.

extrinsic reward - Something given to you by someone else as recognition for good work; extrinsic rewards include pay increases, praise, and promotions.

goal-setting theory - The idea that setting ambitious but attainable goals can motivate workers and improve performance if the goals are accepted, accompanied by feedback, and facilitated by organizational conditions.

Hawthorne effect - The tendency for people to behave differently when they know they are being studied.

hygiene factors - In Herzberg's theory of motivating factors, job factors that can cause dissatisfaction if missing but that do not necessarily motivate employees if increased.

intrinsic reward - The personal satisfaction you feel when you perform well and complete goals.

job enlargement - A job enrichment strategy that involves combining a series of tasks into one challenging and interesting assignment.

job enrichment - A motivational strategy that emphasizes motivating the worker through the job itself.

job rotation - A job enrichment strategy that involves moving employees from one job to another.

management by objectives (MBO) - A system of goal setting and implementation that involves a cycle of discussion, review, and evaluation of objectives among top and middle-level managers, supervisors, and employees.

Maslow's hierarchy of needs - Theory of motivation based on unmet human needs from basic physiological needs to safety, social, and esteem needs to self-actualization needs.

motivators - In Herzberg's theory of motivating factors, job factors that cause employees to be productive and that give them satisfaction.

principle of motion economy - Theory developed by Frank and Lillian Gilbreth that every job can be broken down into a series of elementary motions.\

reinforcement theory - Theory that positive and negative reinforcers motivate a person to behave in certain ways.

scientific management - Studying workers to find the most efficient ways of doing things and then teaching people those techniques.

time-motion studies - Studies, begun by Frederick Taylor, of which tasks must be performed to complete a job and the time needed to do each task.

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[15 Apr 2010|10:43am]

Atmospheric Structure

Thermosphere

Mesosphere

Stratosphere

Troposphere

 

Carbon Monoxide (CO)

–Colorless, odorless gas

–Produced by fuel combustion:

Vehicles: 62%

Lawn equipment: 10%

Wildfires: 6%

Incineration: 3%

Residential wood burning: 2%

–Binds with Hb prevents binding of O2

–Most abundant by mass (87.2 million tons in 2004)

 

–Damages respiratory tissues when inhaled

Asthma

Bronchitis

Emphysema

 

Developed World:

–Tobacco smoke

4,000 chemicals, many carcinogens

Second hand smoke linked to cancer

20% of young children exposed

–Radon gas

Radioactive gas from natural decay of Uranium in rocks

Linked to lung cancer

Fuel wood burning

5% of all deaths in developing world

 

Evidence of Climate Change

n  Ice cores

n  Sediment cores

n  Atmospheric sampling

n  Sea Surface Temperatures

 

Greenhouse Effect

n  Infrared radiation warms the surface

n  Absorbed by ‘greenhouse gasses’

          CO2

          CH4

          N2O

          CFCs

 

 

§Historic composition

–H2, He, NH3, CH4, CO2

–No O2until photosynthesis evolved

Current composition

–Mostly N2, O2

–Many trace gasses

Indoor Air Pollutants

–Wood smoke

–Carbon monoxide

–VOCs

–Tobacco smoke

–Radon gas

 

 

Mesosphere

–50-90km

–Temps fall with altitude

–Difficult to explore

Above flight altitude

Below satellite altitude

 

IPCC

n  Intergovernmental Panel on Climate Change

n  Est. 1988 by UNEP

n  2001 report indicates significant evidence of global climate change

 

Natural sources:

–Dust

–Forest fires

–Volcanoes

 

Nitrogen Oxides (NOX)

–Bad smelling, red-brown gas

–Major contributor to smog & acid precipitation

–Sources:

Vehicle emissions

Electrical production emissions

 

 

Outdoor Air Pollutants

–Natural sources

–Carbon Monoxide

–Sulfur Dioxide

–Nitrogen Oxides

–Tropospheric Ozone

–Particulate Matter

–VOCs

 

Ozone Depletion:

–Montreal Protocol 1987

180 nations participating

Reduction of CFCs by 95%

–Why a success?

Cooperation between governments and industry

Adaptive management strategies

 

Particulate Matter

–Any solid or liquid small enough to be carried into atmosphere

Lead (Pb)

Dust

Soot

 

 

Stratosphere

–11-50 km

–Includes ozone layer(17-30 km)

–Absorbs and scatters UV radiation

–Dry and low density

 

Sulfur Dioxide (SO2)

–Source: combustion of coal for energy (70%)

–Reacts with atmospheric water:

Sulfuric acid (H2SO4)

–Result: Acid Precipitation

 

Tropospheric Ozone

–Source: chemical reactions

Sunlight + NOx + VOCs O3

–Major component of photochemical smog

–Component that

most frequently exceeds

EPA standards

VOCs

–Volatile organic compounds

–Carbon containing, easily evaporate

–Sources:

Hydrocarbons

–Gasoline, diesel fuel

Industrial solvents

–Dry cleaning solutions

Vehicle emissions

 

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